Deputy President William Ruto recently revealed that the National Government will be passing on its shareholding in the troubled Mumias Sugar Company to the county government.
The National Government owns about 20% of the shares in Mumias. The Treasury put in KSh 3.7 billion in an effort to revive the company but the plan failed.
National Government’s decision to transfer its shares will be a big support to the county government’s efforts to revive Mumias Sugar. Therefore, it will give the county government representation on the board of the sugar firm.
The Deputy President stated that it was about time another strategy was used to revive Mumias Sugar.
On September 24th KCB group, a major creditor to Mumias Sugar, appointed Ponangipalli Venkata Ramana Rao of the Tact Consultancy Services as the receiving manager of the financially distressed company.
Mumias Sugar was shut for over one year due to huge debts and lack of sufficient raw materials. The deputy president advised KCB group to hold talks with the county government on how the receivership could be dealt with in order to revive the miller.